Petron doubled profit in H1 on looser restrictions | Inquirer Business
VOLUME, PRICES UP

Petron doubled profit in H1 on looser restrictions

Petron Corp., the country’s sole crude oil refiner, doubled its consolidated net income as of June to P7.7 billion from P3.87 billion last year as the continued easing of pandemic restrictions pushed up sales.

“Our postpandemic transition has so far been marked by steady growth, particularly in segments where we suffered major setbacks earlier during this crisis,” said Ramon Ang, president and CEO of Petron.

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Consolidated revenues surged year-on-year by 129 percent to P398.52 billion from P174.13 billion, fueled by the “sustained increase in sales volume and prices.”

The price of Dubai crude, the Asian bellwether, as of end-June averaged $102 per barrel, with Petron saying supply concerns persisted due to geopolitical conflicts.

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Both Philippine and Malaysian operations of Petron, including its trading subsidiary in Singapore, sold a total of 51.4 million barrels, 34 percent higher than 38.5 million barrels last year.

“Sales volume improved across all trades with Petron’s commercial sales posting the highest increase as more industries, including aviation travel, rebounded from the pandemic’s impact,” it added.

Retail business registered an almost 30-percent uptick on the back of strong sales of its premium gasoline and diesel fuels, as well as lubricant products, Jet-A1, liquefied petroleum gas and petrochemicals.

Petron said refining cracks strengthened as prices of finished products further surged in the second quarter.

The listed firm also said it benefited from strong regional refining margins with higher production at its 180,000 barrel-per-day refinery in Bataan though these were partially offset by lower marketing margins as a result of escalating price competition in the market.

“We move forward with hope and optimism as we roll out projects that will not only yield optimal returns for the company but more importantly, lead toward greater sustainability and create economic opportunities for more sectors,” added Ang.

Separately, the oil company said it had secured the board’s go signal to amend its articles of incorporation, enabling them to venture into the biofuels business.

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“The proposed amendment will allow the company to construct and operate a coco-methyl ester plant and secure relevant permits therefor,” it said, adding that it is subject to the Department of Energy’s approval.

Petron is yet to disclose other details regarding the planned facility including the project cost, location and timeline for completion.

Oil companies are mandated by law to blend liquid fuels for motors and engines being sold nationwide with biofuels.

To date, Petron operates about 40 terminals in the region and has around 2,800 service stations where it retails gasoline and diesel. INQ

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